Alternative Payments Will Surpass Cards Online Worldwide by 2017
May 27, 2014
While credit cards are and will remain the dominant form of online payment in North America, alternative payment methods will be used for more than half of all B2C online transactions worldwide by 2017, according to a new report from German research firm yStats. The Hamburg-based company said digital wallets and mobile payments will experience the fastest growth both in the U.S. and internationally and also that alternative payments are transcending the online world to become preferred in omnichannel environments.
In North America, yStats found credit cards were used 75 percent of the time in online transactions and the second most popular method were digital wallets. The report said digital currencies, including bitcoin, would gain ground over the next few years, bolstering the alternative payment numbers in the U.S. In Europe, yStats forecast the share of alternative payments, including mobile and e-wallets, to reach up to 20 percent of the total payments market by 2020—though in countries like Germany and the Netherlands, alternative payments already account for the lion’s share. Asia-Pacific was another region yStats found tilted heavily toward card usage online, but that region has a much stronger digital wallet presence than the rest of the world.
In some regions, like Latin America, alternative payment methods already account for more than half of all online transactions.